Alibaba Stock Surges 3.6% On Primary Hong Kong Listing Plan, Hang Seng Index Sees Trend-Reversal

Hong Kong’s benchmark Hang Seng Index opened in the green on Tuesday, flipping the trend from Monday, as better-than-expected economic growth data from South Korea offset mixed cues from Wall Street overnight.

Tech Gathers Steam: The Hang Seng rose 0.66% at the open, as shares of Alibaba shot up 3.61% following news that it will be applying for a primary stock listing in Hong Kong. This move would allow the e-commerce giant to seek inclusion in the Stock Connect link with the Shanghai and Shenzhen exchanges, Bloomberg reported — meaning, Chinese investors would finally have an opportunity to directly invest in the stock.

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Macro News: Hong Kong’s financial secretary has warned the annual economic forecast could be downgraded in August for the second time in three months as recovery remains weak, adding that while consumption had witnessed an uptick, exports and investments remained sluggish, reported the South China Morning Post.

China has set up an inter-ministerial meeting mechanism that would bring together top officials from 20 different government bodies at least once a year to communicate their policies on the digital economy, the South China Morning Post reported. The country’s top economic planner will convene these meetings, an indication that the focus will be on technology development rather than a crackdown.

Company News: XPeng-backed Aero HT opens its trial production factory prior to its roll-out in 2024, reported EV.

Global Markets: U.S. markets ended mixed on Monday ahead of a crucial week as investors brace for possible U.S. rate hikes and more earnings from big tech firms. The Nasdaq index fell 0.43%, while the Dow Jones Industrial Average closed 0.28% higher. The S&P 500 rose 0.13%.

On Tuesday morning, Japan’s Nikkei 225 traded 0.29% lower. South Korea’s Kospi rose 0.26% as data showed gross domestic product beat estimates, expanding 0.7% in three months through June.

China’s Shanghai Composite and Australia’s ASX 200 traded flat in Tuesday’s opening trade.